If you are a Bitcoin trader or you are pretty much into a crypto investment, at some point of time, you may feel the need to do the conversion of Bitcoins to Fiat currencies. Now, if you are not aware of the entire conversion process, there are certain important points that you need to know about. Read on Bitcoin auto-system to know more in detail!
- Convert bitcoin by centralized crypto exchanges:
This method is the most used method. The centralized crypto exchanges are controlled by third-party. So, if you place a convert order you do not have to take many headaches on the process because the exchange will execute the whole process once they get instructed. That is why these exchanges are good for beginner use.
These exchanges have the features of converting bitcoin into cash. And, they also provide some exciting tools. Before placing an order you can put the number of bitcoin you are willing to sell and the tool will give you the answer that how much value in fiat currency you can get according to the bitcoin’s current market price.
Some of these exchanges can ask you for a simple KYC verification before executing the process because they have to follow the country’s rules and regulations to some extent in order to work with safety and security. But, one drawback of this method is the time they take for converting your bitcoin and sending them to your bank account. It can take a few business days most of the time. Also, they charge some transaction fees and regulatory fees as they are centralized systems.
- Convert bitcoin by decentralized crypto exchanges:
These exchanges provide peer-to-peer transactions. Here buying and selling are more flexible than in a centralized exchange. If you go to their site to sell your bitcoins you can see so many users offering different buying prices. You can choose a suitable price and when both of you finalize the deal you can share your account address. Then the buying party will send the fund to your account in exchange for the bitcoin that you have to send to his or her account.
These exchanges don’t control by any third party because they are decentralized. So, most of the exchanges do not need any identity verification. Also, there you don’t have to pay any extra charges and transactions take place in a short time in comparison to a centralized exchange.
- Convert bitcoin through bitcoin ATMs:
Bitcoin ATMs are just like traditional ATMs and work a little bit the same way. The process is simple. The ATM will provide you with a QR code on its screen or by print. You have to open your bitcoin account or wallet from where you can scan the QR code. Once it is verified the machine will provide you with the cash.
These ATMs are very convenient and take minimum time to cash out your bitcoins. But the transaction charges are high in this case. You shouldn’t expect to find the Bitcoin in rural areas. One more disadvantage of using these ATMs is there are limits on how much cash you can withdraw because it depends on the physical cash that the ATMs are holding.
Convert bitcoin by bitcoin Debit Card:
Bitcoin debit cards work like conventional debit cards. They are linked with your bitcoin account. If you want to purchase something from any merchandise and they accept bitcoin payments, you can pay them by using your bitcoin debit card.
You can use these cards anywhere but, you have to know first if the merchant’s machine accepts the card company or not. If yes, you can do the transaction. The fund will be deducted from your bitcoin account and the merchant will be paid.
The only drawback here is you can’t have cash in the conversion of bitcoin because you are using them to buy something or to take a service. But, these transactions are very quick.
Conclusion
The cryptocurrency bitcoin is accepted in so many places now so you can use them directly or by converting them into fiat currencies. You can also trade them rather than hold them unused in your bitcoin account. When planning to invest in Bitcoins.
